Barclays, HSBC and Nationwide are among the major lenders that have reduced their rates following the interest rate decision this week.

The Bank of England has cut its . This means anyone with a tracker mortgage will immediately see their monthly payments reduced, while standard variable rate (SVR) deals can also be influenced by the base rate, although it is down to your lender to decide whether they pass on any increases or deductions.

You normally revert to an SVR once your current mortgage deal expires. If you have a tracker mortgage, your monthly payments will fall by nearly £29 on average now the base rate has been cut. The average saving for someone on an SVR is around £17 a month, if the base rate reduction is passed on in full.

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If you’re on a fixed rate deal, your monthly mortgage payments won’t change until your fixed period ends. There are around one million fixed rate deals that are set to expire in 2025, with approximately 690,000 on three, four, or five-year fixed terms. It means these people face paying substantially more when they come to remortgage, due to how high interest rates are compared to before interest rates started rising in 2022.

Barclays is cutting tracker and SVR rates for existing by 0.25 percentage points on March 1, 2025, while new products are being adjusted by the same amount today. The bank cut rates on fixed purchase and remortgage products by up to 0.25 percentage points on Tuesday.

Nationwide is also reducing its tracker and SVR mortgages by 0.25 percentage points on March 1, 2025. It hasn't announced any changes to its fixed rate deals. HSBC has cut tracker mortgages by 0.25 percentage points from today, while its SVR products are being kept under review. The bank reduced some of its fixed rates yesterday ahead of the Bank of England decision.

If you have a tracker or SVR mortgage with Santander, your rate will decrease by 0.25 percentage points on March 3, 2025. The bank has not announced any changes to its fixed rate products. Or if you're with Virgin Money, your tracker or SVR mortgage will decrease by 0.25 percentage points on March 1, 2025. New tracker and SVR rates have been reduced from today, however, no changes have been announced to its fixed rate deals.

If you're due to remortgage, you can normally lock in a new deal at least three months before the end of your current one. You should make sure your remortgage is scheduled to complete after your existing deal finishes, to avoid paying an early repayment charge.

In terms of choosing how long you want your new mortgage to run for, consider if your circumstances are likely to change during that period and if you're comfortable with those repayments. The longer you fix for, the more certainty you'll have over how much you're paying.

However, if interest rates continue to fall, you wouldn't benefit from any rate reductions until your fixed period ends - but if rates were to go up, you'd be protected from any increases. You can speak to a mortgage broker who will be able to run through different options with you, just make sure you check first if they charge any fees.

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